One-glance verdict
Undervalued
$570.25 our estimate vs market $200.75
Wall Street consensus: $193.91 (-66.0% lower than our fair-value estimate)
65% below our estimate, below the bear case
Fundamentals snapshot
WEX Inc.
WEX · NYQ · Technology · Software - Infrastructure
Current price
$200.75
52-week range
$125.29 - $203.99
Market cap
$6.84B
Balance sheet
Healthy
2.76x Stretched
Net cash $744.40M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 4.9% last year.
- Reward Returns 30.2% on equity, ahead of 60% of its peers.
- Reward Free cash flow was positive in 8/10 years.
- Risk Insider ownership is only 1.3% (peer median: 2.4%).
What this company does
WEX Inc.
WEX provides software and payment systems that help businesses manage specialized expenses, primarily for their vehicle fleets (like fuel cards) and employee health benefits. The company makes its money by taking a small fee from the massive volume of transactions it processes, making it a key partner for companies trying to simplify and control their spending.
How the company got here
WEX started in 1983 as Wright Express, with a simple idea to help trucking companies manage fuel purchases using a special payment card. This 'fleet card' business was its foundation for many years. A major shift happened in 2012 when the company changed its name to WEX, signaling its ambition to move beyond just fuel and into other types of business payments. Since then, it has grown by acquiring other companies, which allowed it to expand into new areas like healthcare benefits and corporate payments for things like travel and accounts payable.
What it actually does
At its core, WEX provides a platform that helps other businesses manage and pay for specific, often complicated, expenses. Think of it as a specialized credit card and software system rolled into one, designed for business needs, not for individual consumers. For example, it helps companies control what their truck drivers spend on fuel, enables businesses to pay their suppliers electronically, and manages employee health benefit accounts. WEX simplifies these processes, reduces paperwork, and helps prevent fraud for its business customers.
Mobility
This is WEX's original and largest business, making up about half of its revenue. It provides 'fleet cards' to companies with vehicles, from small businesses to large trucking fleets and government agencies. These cards allow drivers to buy fuel and pay for maintenance, while giving their employers control over how much is spent and where. WEX makes money from fees on these transactions and by processing the payments between the fleet owner and the gas station or repair shop.
Benefits
This segment, which accounts for roughly a third of the company's business, helps manage employee benefits programs. It provides the technology platform for things like Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs), which allow employees to set aside money tax-free for medical expenses. Employers, health plans, and financial institutions pay WEX for this service, which includes providing debit cards for employees to use and ensuring all the complex rules are followed.
Corporate Payments
This is a growing part of WEX's business, representing about a fifth of its revenue. It helps companies make payments to their suppliers and manage other business-to-business expenses, often in industries like travel, insurance, and media. Instead of writing paper checks, a business can use WEX's system to send a secure, one-time-use 'virtual card' number to a supplier, which simplifies the process and reduces fraud. WEX earns fees from these transactions, helping businesses automate how they pay their bills.
What management is betting on now
WEX is focused on growing its Corporate Payments business, especially by helping companies automate how they pay their suppliers (a process called accounts payable automation). The company is also investing heavily in technology, including artificial intelligence (AI), to create new tools that give customers better insights from their spending data and to make its platform more efficient. Finally, WEX is expanding its services for electric vehicle fleets, helping them manage things like at-home charging and finding public charging stations.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-31.70M
FY2024 Q4
$599.70M
FY2025 Q1
$-514.20M
FY2025 Q2
$230.00M
FY2025 Q3
$341.60M
FY2026 Q1
$-368.30M
FY2026 Q2
$-121.10M
Revenue
$753.50M
Net income
$108.50M
Diluted EPS
3.11
Operating cash flow
$-77.60M
Free cash flow
$-121.10M
Fetching…
Sources
Revenue
$673.80M
Net income
$77.70M
Diluted EPS
2.22
Operating cash flow
$-330.80M
Free cash flow
$-368.30M
Fetching…
Sources
Revenue
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Net income
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Diluted EPS
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Operating cash flow
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Free cash flow
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Sources
Revenue
$691.80M
Net income
$80.30M
Diluted EPS
2.30
Operating cash flow
$376.60M
Free cash flow
$341.60M
Fetching…
Sources
Revenue
$659.60M
Net income
$68.10M
Diluted EPS
1.98
Operating cash flow
$264.60M
Free cash flow
$230.00M
Fetching…
Sources
Revenue
$636.60M
Net income
$71.50M
Diluted EPS
1.81
Operating cash flow
$-481.60M
Free cash flow
$-514.20M
Fetching…
Sources
Revenue
$636.40M
Net income
$63.90M
Diluted EPS
1.60
Operating cash flow
$638.40M
Free cash flow
$599.70M
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Sources
Revenue
$665.50M
Net income
$102.90M
Diluted EPS
2.52
Operating cash flow
$3.30M
Free cash flow
$-31.70M
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Sources
Is it cheap or expensive?
Fair value $570.25 vs current price $200.75
Wall Street consensus is the average analyst price target: $193.91 (-66.0% lower than our fair-value estimate).
Our most-likely fair value is $570.25 a share — about 184.1% above today's price of $200.75, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $744.4M - more cash than debt. Interest coverage 2.8x.
Net debt
$-744.40M
Interest coverage
2.76x
WEX Inc.'s profit covers its interest bill about 2.8 times over.
Healthy
Worse cushion
Baseline
Better cushion
WEX
BASELINE
WEX Inc.
Total debt $5.36B Interest coverage 2.76x This is the baseline the peer rows are being compared against.
Total debt $10.74B Interest coverage 4.83x +75% vs WEX Carries about 1.8x more debt cushion than WEX.
Total debt $23.56B Interest coverage 2.27x -18% vs WEX Carries about 1.2x less debt cushion than WEX.
Total debt — Interest coverage 3.72x +35% vs WEX Carries about 1.3x more debt cushion than WEX.
Total debt $2.81B Interest coverage 6.27x +127% vs WEX Carries about 2.3x more debt cushion than WEX.
Total debt $3.52B Interest coverage 11.63x +322% vs WEX Carries about 4.2x more debt cushion than WEX.
What you should know
The case for and against WEX
3 Rewards
1 Risk
Rewards
-
Revenue grew 4.9% last year.
-
Returns 30.2% on equity, ahead of 60% of its peers.
-
Free cash flow was positive in 8/10 years.
Risks
-
Insider ownership is only 1.3% (peer median: 2.4%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
20.03x
Forward P/E
9.47x
P/B
5.12x
P/S
2.45x
EV/EBITDA
6.62x
PEG ratio
1.01x
Profitability
How much profit each dollar creates
Gross margin
73.2%
Operating margin
26.9%
Net margin
12.6%
ROE
30.2%
ROA
2.9%
Health
Liquidity and balance-sheet strength
Debt / equity
3.98x
Current ratio
1.04x
Quick ratio
0.98x
Total debt
$5.36B
Total cash
$6.10B
Growth
How the business has been compounding
Revenue TTM
$2.79B
Revenue 5Y CAGR
9.5%
EPS TTM
10.02
EPS 5Y CAGR
23.5%
Cash flow
How much cash the business throws off
Operating CF TTM
$262.90M
Free CF TTM
$313.70M
FCF margin
11.2%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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